Broadcom cites 'two strong drivers' of revenue growth in Q1 earnings report

Broadcom Inc (NASDAQ: AVGO) is trading down in extended hours on Thursday even though it reported market-beating financial results for its first quarter on continued AI demand.

Broadcom stock down on muted guidance

The stock is taking a hit primarily because investors are not entirely content with the future guidance. $AVGO reiterated its guidance for $50 billion in revenue in fiscal 2024.

Analysts, in comparison, were at $49.8 billion. Hock Tan – the chief executive of Broadcom Inc said in a press release today:

The multinational also announced $5.25 a share of quarterly cash dividend on Thursday. Broadcom stock is now up roughly 35% versus its year-to-date low.

Broadcom Q1 earnings snapshot

• Earned $1.33 billion versus the year-ago $3.77 billion
• Per-share earnings also declined from $8.80 to $2.84
• Adjusted EPS printed at $10.99 as per the earnings report
• Revenue climbed 34% year-over-year to $11.96 billion
• Consensus was $10.42 a share on $11.72 billion in revenue

Broadcom saw its semiconductor solutions revenue pop 4.0% in Q1 while infrastructure software revenue went up a whopping 153%. CEO Tan also said on Thursday:

Earlier this week, $AVGO unveiled the world's first 5-nanometre PCIe solutions as Invezz reported here.